Sustainable financial inclusion in Nigeria: a need to go beyond access to impact

Abstract

Purpose This paper aims to evaluate the processes and strategies of Nigerian banks towards achieving financial inclusion and offer recommendations for policies that can lead to effective and sustainable financial inclusion. Design/methodology/approach This paper conducts semi-structured interviews with senior executives of Nigerian banks to investigate their financial inclusion policies and practices. Findings This paper highlighted Nigerian banks’ views on dimensions that measure financial inclusion and found that they recognise that they play a pivotal role in providing access to formal financial services; however, their efforts to promote financial inclusion are provider-focused rather than customer-focused; they are keen to promote financial services usage; however, very little attention is paid to customer outcomes; financial inclusion is viewed as synonymous with access and innovations are not aiming for impact; and the sector is plagued with infrastructural challenges that breach service quality. Originality/value This paper reports on the practices of Nigerian banks towards financial inclusion and provides recommendations for rethinking sustainable financial inclusion. To date, this issue has not been investigated in the substantive literature. Nigeria is an ideal research site for examining financial inclusion. In recent years, the banking sector has made rapid strides in implementing policies to promote the adoption and usage of formal financial services. However, over half of the country’s adult population remains outside the formal financial system.